A farm can produce 10,000 bushels of wheat per year with 5 workers and 13,000 bushels with 6 workers. The marginal product of the sixth worker for this farm is:
a. 10,000 bushels.
b. 3,000 bushels.
c. 500 bushels.
d. 23,000 bushels.
QUESTION 2When economists refer to an economy's price level, they indicate:
a. the rate of inflation in that economy.
b. the prices of goods and services relative to consumers' incomes.
c. a composite measure of prices of all goods and services.
d. a period of level, or steady, prices in that economy.
e. the price of a specific consumer good.
QUESTION 3A kink in the demand curve facing an oligopolist is caused by:
a. the belief that competitors will follow price increases but not match price decreases.
b. excessive advertising.
c. rapidly rising marginal revenues.
d. the assumption that competitors will follow price reductions but not price increases.
QUESTION 4A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 10,000 bushels per acre per year.
b. 1,200 bushels per acre per year.
c. 2,000 bushels per acre per year.
d. 12,000 bushels per acre per year.
QUESTION 5Economic activities that signal forthcoming changes in the economy are referred to as:
a. coincidental economic indicators.
b. GDP implicit price deflators.
c. lagging economic indicators.
d. perfect economic indicators.
e. leading economic indicators.
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